Wind Power Monthly’s ‘EXCLUSIVE: offshore wind subsidy could be as low as £2/MWh’, includes the following quote from our team (provided by Mike Blanch and Giles Hundleby) on the likely prices in the upcoming offshore wind auctions in the UK:
Experts at BVG Associates told OWJ, “Our understanding is that the actual subsidy paid will be the difference between the reference price and the strike price, so that could be a lot more or a lot less than £2/MWh. Under some scenarios, it could even go negative.
“We expect the allocation to turn into an auction and actual bid prices to be less than the £56/MWh and £53/MWh for the two years in question. This means that the difference between the actual ‘strike price’ and the actual ‘reference price’ in the settlement periods is likely to result in a payment to the government and so is ‘subsidy free.’”
You can read the article in full via this link EXCLUSIVE: offshore wind subsidy could be as low as £2/MWh